Pay increases for employees

There are several elements which may combine to provide an increase to an employee's remuneration. Each year, Fair Work Australia's Annual Wage Review makes a determination as to the increase to the Federal Minimum Wage and also to minimum wages in Modern Awards. Any increase determined by FWA will become effective as of the first full pay period on or after 1st of July each year, and must be passed onto those award paid employees. This increase may also affect any employers who have enterprise agreements, which have terms providing for increases progressively over the life of the agreement which are not necessarily linked to the annual wage review process. Transitional provisions contained in an award that relate to minimum wage obligations or penalties and loadings may also contribute to the increase of an employee's wage. It is prudent that employers pay attention to these provisions when calculating the absolute minimum entitlements for award covered employees.